China, the world’s largest source of forestry products, started trading fiberwood and plywood futures Friday at the Dalian Commodity Exchange. Shi Feng, secretary-general of the China National Forest Product Industry Association, said the launch of the two futures contracts will offer companies more tools in pricing, help them arrange production and sales, and hedge risks…Full article: China Daily Dec 2013
- According to the article, fiberwood and plywood are primarily used for the manufacture of furniture and packaging
- From 1996 to 2002, Chinese timber production declined an average of 6% annually, with production bottoming out at 44.3 million cubic meters in 2002. From 2003 to 2011, timber production has steadily increased (with the exception of 2009) an average of 7% annually, peaking in 2008 and 2011 at just over 81 million cubic meters. China’s forest area has progressively increased an average of 1% annually from 1996 to 2011.
- China’s timber production is largely located in the southern regions of the country. In 2011, Guangxi province produced 15.2 million cubic meters of timber or 19% of China’s total timber output. Guangdong province produced 7.3 million cubic meters (9% of China’s output), while Hunan, Fujian, and Yunnan provinces produced 5.9 million to 5.3 million cubic meters of timber (7% output each).